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Cloud Management: The Ultimate Tool in Lean Manufacturing

As a machining systems engineer and lean consultant, Techsolve’s Amit Deshpande has looked at the Cloud from both sides now. In a guest editorial, he explains how Cloud management systems have expanded the benefits of lean manufacturing beyond only operational tasks.

The goals of lean manufacturing are the same as they have been for years, eliminate waste to increase productivity, but the tools we have for implementing those goals are getting better all the time. Communication is critical in a lean manufacturing environment. Prompt and accurate communication of information, whether it be manufacturing schedule changes, quality issues, machinery down or inventory issues, is required. The sooner this information is in the hands of those performing or managing the work, the sooner problems can be solved. Handheld devices such as smart phones and tablets are not only making this growth possible, but in many cases, are the most convenient method for accessing and responding to information. They improve communication and put needed information in the hands of whoever needs it, no matter where they are.

This 24/7 mobile access is made possible through cloud management systems that track projects and machinery. Real-time reporting and comprehensive monitoring of shop operations and capacity are saving even more time and money than traditional lean processes alone, allowing management to focus on growth activities, not just operational tasks.

According to IDC Manufacturing Insights, more than 22% of surveyed manufacturers said they are running cloud services in their organizations and another 44% said they are currently implementing or had firm plans to implement cloud computing to enable process optimization and cut cost. The survey showed that the percentage of companies managing traditional infrastructure spending will fall to about 38% from 54.8%. Although the number of adopters in recent years has increased, a significant portion of manufacturers are still missing the benefits of Big Data and efficiency improvement that cloud software can create.

Moving from traditionally unstructured approaches often found in older processes to a modern, structured solution that is designed for data collection and analysis to enable enterprises to develop new, consistent processes can result in 14% higher production yields. The immediate advantages of cloud computing are that such systems can be deployed in days versus months for significantly less cost. Additionally, the Cloud has the scalability to manage the exponentially increasing data which, according to IBM, is predicted to be more than 35,000 exabytes annually by 2020.

Beyond that, the technology has had a profound effect on inventory management. Lean inventory management requires accurate and timely communication of inventory levels, requirements and location. The improvement in information systems, combined with technologies such as GPS, bar codes and RFID provide a significant contribution to the management of inventory. All of these tools provide better automated information collection, analysis and distribution to ensure the needed information makes it into the right hands.

Improved data management, measurement and reporting systems have also brought a science to the maintenance of equipment. Things like infrared cameras to shoot hot spots and ultrasound monitoring to detect problems in moving parts (such as bearings) have been around a long time. However, cloud software provides even more information, much faster with the data collected. The use of management software systems brings more consistency and predictability to the maintenance of equipment. These software systems provide updated preventative maintenance schedules, machine downtime tracking and equipment cost tracking among other benefits.

Such tools bridge the gap of distance and time so that better communication and visibility can foster collaboration. When a supply chain is integrated together, the opportunity for improving products – including environmental compliance methods and sustainable designs –could be enormous.

Cloud management systems have expanded the benefits of lean manufacturing beyond just operational tasks and even capacity improvement. With data at their fingertips through cloud management and lean processes in place, manufacturers can think more strategically, improve product quality, and measure return on investment and how resources are being allocated. This is the type of thinking required to put manufacturing companies at the forefront of the industry.

Amit Deshpande has been a leading engineer for a lean process improvement consultancy since 2007. He has expertise in energy management and is a certified Lean Six Sigma Green Belt.